You’ve finally found a home that works for you! Then you learn the seller has already received other offers. If you still want to make an offer it is essential to make it stand out from the rest. You never know what the seller’s motivation is or what the other offers are so it’s best to make as competitive an offer as you are comfortable with.
Here are some strategies you can use to make your offer more appealing to sellers:
Offer a Higher Price: This is the most obvious way to make your offer stand out. Consider offering more than the asking price if you have the financial means to do so. However, make sure you don’t go over your budget, and don’t make an offer that’s significantly higher than the home’s market value.
Increase the Earnest Money Deposit: Consider increasing the amount of earnest money you’re willing to put down. A higher deposit shows the seller that you’re serious about buying the home and you have more skin in the game.
Be Flexible with Closing Dates: Be flexible with your closing date and offer to work with the seller’s timeline. If they need more time to move out, for example, offer to extend the closing date to accommodate their needs.
Limit Contingencies: Contingencies protect buyers, but they can also make sellers nervous because they introduce uncertainty into the transaction. Consider limiting the number of contingencies in your offer to make it more secure for the seller.
Offer Cash If Possible: You can always refinance after you close to get most of your cash back out. We’ve all heard the saying “Cash is King”, and a cash offer will often trump offers with traditional financing.
Home Inspection: Say your purchase will be “As-Is” or that your home inspection repair request will be limited to Life and Safety items only. This limits the amount of repairs the seller will be required to perform and can speed up the process for both parties.
Appraisal Contingency: Offer to pay a set price regardless of the outcome of the lender’s appraisal. An alternative is to say you will pay a certain dollar amount over the appraisal should it come back lower than the original sales price.
Write a Personal Letter: Writing a personal letter to the seller can be a great way to connect with them on a more emotional level. Let them know why you love their home and how you envision your family living there. A personal letter can make your offer stand out from the others and show the seller that you’re a serious and committed buyer.
Each situation is unique, and what works for one seller may not work for another. These are strategies we have seen work in Anchorage real estate and are suggested based on real estate practices in the local market. Be sure to work with your Wolf Real Estate agent to develop a strategy that will help you stand out and win the bidding war. To connect with one of our agents today just click the “Contact Us” button at the top of this page – we can’t wait to meet you!